Five of IndexIQ’s six IQ Hedge indices were positive in September, led by the IQ Merger Arbitrage Index, up 1.18 per cent, and the IQ Hedge Global Macro Index, which climbed 0.86 per cent.
IQ Hedge Market Neutral posted the lone negative return, declining 0.15 per cent for the month.
"With traders returning from summer vacations, volatility picked up, too, as markets confronted a range of economic data and the unfolding US election," says Adam Patti (pictured), chief executive officer at IndexIQ. "We expect this to continue at least until after the election, and more likely to the end of the year and into 2017."
Salvatore Bruno, IndexIQ's chief investment officer, says: "The Fed continues to keep its eye on both inflation and the job market. With the Core Consumer Price Index (CPI) up a little over 2 per cent on a trailing 12-month basis and the job market showing strength a Fed tightening by year-end remains a very real possibility."